• Gift Deed between social entities

Dear Sir, 

We are a central Government Muslim Employees Association in Bangalore.  We have a Piece of Land whose title is with our Association . we want to Transfer this Title to our Sister Concern which is a Religious educational Trust . Can this be Done Through a Gift Deed with out attracting normal stamp duty as under sale/ transfer deed.
Asked 7 months ago in Property Law from Bangalore, Karnataka
Religion: Muslim
1) gift deed would also attract stamp duty as per stamp act of your state 

2) in addition registration charges would be payable 
Ajay Sethi
Advocate, Mumbai
23318 Answers
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This can be done at the discounted rate of stamp duty which differs from state to state.
Please get in touch with your local registration office which will guide more appropriately on this account.
Devajyoti Barman
Advocate, Kolkata
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54 Consultations
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Hello,
1) As long as your Association has a valid title you can make a gift deed in the name of the other organisation. It is a legally viable option.

2) However, whether or not it helps you save stamp duty need to be found out from the local registrar's office as parties involved are not in any relation as being legal persons or entities.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
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Hi 
I have gone through your query. we have identical cases that were decided by the high court at Bangalore. 

a) Chief Controlling Revenue Authority, Government Of Karnataka Versus Dr. H. Narasimhaiah precedent at Bangalore. 
b) SUB-REGISTRAR AND DEPUTY COMMISSIONER OF STAMPS & ORS. vs. BUDHARAKKHITA & ORS

In both the cases the courts considered that where  the entire ownership of the properties in the society is transferred to the trust then there is a disposition of property as well as transfer. 

As such, the documents will satisfy the definition of settlement as per s. 2(1)(q)(iii) of the Karnataka Stamp Act, 1957, as there is a non testamentary disposition in writing of movable and immovable properties for any religious or charitable purpose.

In Karnataka Stamp act U/S 2(1)(q)(iii) reads as follows: 
(q) “settlement” means any non-testamentary disposition in writing, of moveable or immoveable property made,—
 (i) in consideration of marriage,
 (ii) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or
 (iii) for any religious or charitable purposes;

Hence, the stamp duty leviable shall be in accordance with Art. 48 of the Schedule to the Karnataka Stamp Act, 1957, 

So going by the above judgments it will be better for you to comply with Karnataka Stamp Duty act under Article 48 of the Schedule of Karnataka Stamp Act 1957.

Hope this helps.
Rajgopalan Sripathi
Advocate, Hyderabad
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1. Yes, you can execute and register the said gift deed,

2. Before executing the said gift deed, it is to be ensured that the decision for executing the said deed is taken in an appropriately convened meeting and the resolution permitting the said execution is recorded properly for verification in future.
Krishna Kishore Ganguly
Advocate, Kolkata
12127 Answers
233 Consultations
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We are a central Government Muslim Employees Association in Bangalore.  We have a Piece of Land whose title is with our Association . we want to Transfer this Title to our Sister Concern which is a Religious educational Trust . Can this be Done Through a Gift Deed with out attracting normal stamp duty as under sale/ transfer deed.

As per section 17 of the Registration Act 1908, it is mandatory to register a gift deed of a immovable property with the sub-registrar of assurances within whose sub-district the whole or some portion of the property is situated, within four months of execution. Else, transfer will be held invalid. Applicable registration charges will be payable. If you want to transfer the property to a trust where registered beneficiary will be your wife and daughters, stamp duty will depend upon whether there is disposition of property. If there is disposition, which will happen in this case, stamp duty will be same as paid on a conveyance of immovable property, for a sum equal to the amount settled or the property’s market value. The instrument of transfer to the trust will also have to be registered as set out above.
Stamp duty is payable on a gift deed, and differs across states.
T Kalaiselvan
Advocate, Vellore
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The stamp duty will have to be paid on the execution of gift deed in accordance with the slab prescribed by the state govt. 
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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if you want to make your sister concern a absolute owner of the property then you can create a religious gift or "sadqa" if want to secure religious merits for indefinite period then you should create a "waqf". registration is not necessary for transfer of property for waqf. 
Shivendra Pratap Singh
Advocate, Lucknow
2760 Answers
41 Consultations
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